Why Solana (SOL) Suddenly Suffered a Heavy Blow

Many traders may be wondering why SOL suddenly faced a Waterloo. The answer is actually hidden in FTX's massive debt repayment plan.

It is reported that FTX will repay creditors up to $16 billion in debt. Although there are voices in the market suggesting that this indicates liquidity is gradually returning, the truth is often more complex. Surprisingly, more than $2 billion of this huge amount will be repaid in the form of Solana (SOL) tokens.

Surge in SOL Supply: A large number of new tokens flooding the market undoubtedly increases the selling pressure. Market Capitalization Volatility: With demand relatively stable, the increase in supply will undoubtedly lead to a short-term price decline.

Therefore, although liquidity seems to be strengthening, the sharp decline in SOL is actually more due to oversupply rather than the influx of new funds. We should remain vigilant and closely monitor the further developments of the situation.

Please believe that this is just a temporary setback.

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